IN THE NEWS

BOTHELL, Wash. -- Cardiac Science Corporation, a global leader in advanced cardiac diagnosis, resuscitation, rehabilitation, and informatics products, announced revenue for the quarter ended June 30, 2008 was $52.1 million, an increase of 16% over the prior year period.

Revenue growth resulted from increases in defibrillation sales of 32% and service revenue of 19%, offsetting a decrease in cardiac monitoring sales of 7%. Of particular note, total international product sales doubled, increasing 113% over the prior year's second quarter, driven primarily by strong automated external defibrillator (AED) sales. The Company also re-commenced hospital defibrillator shipments in the second quarter, which contributed as expected to the overall sales results.

The Company reported net income of $2.3 million, or $0.10 per diluted share in the second quarter, compared to net income of $4.5 million, or $0.19 per share in the second quarter of 2007. Prior year net income included a $6.0 million non-cash gain from a litigation settlement, and $2.0 million in litigation-related expenses in that quarter.

Net income for the second quarter of 2008 was up by 32% over pro forma net income for the second quarter of 2007, which would have been $1.7 million, excluding the effect of the above-mentioned litigation items, net of income taxes.

Second Quarter Financial Results

Second quarter revenue of $52.1 million represented an increase of 16% over the $44.9 million in revenue reported in the second quarter of 2007.

The increase in defibrillation revenue was driven primarily by strong global AED sales. International AED sales were up 120%, with increases in most international areas, particularly Asia and Europe. While there was a 22% decline in domestic AED sales compared with the exceptional results of the prior year's quarter, which included a mandated multi-million-dollar school deployment, domestic AED sales did increase sequentially compared with the first quarter of 2008.

The Company believes general economic concerns are continuing to influence buying activity in the cardiac monitoring portion of the business. Total cardiac monitoring sales declined 7% during the quarter, however, total year to date cardiac monitoring sales are essentially flat when compared with the same period last year.

The increase in service revenue of 19% reflected continued growth in both global AED program management and cardiac monitoring contract sales.

Second quarter gross margin was 49.8%, an increase over the year-ago gross margin of 48.5%. This improvement was due to higher overall volume, favorable product mix, improvements in service gross margin, and the continuing success of cost reduction and manufacturing efficiency initiatives.

Operating expenses in the second quarter of 2008 were $22.2 million, or 42.6% of revenue. This compares to operating expenses of $15.5 million for the second quarter of 2007, which benefited from the net gain on litigation-related items mentioned above. Excluding the effect of the litigation items, pro forma operating expenses would have been $19.5 million, or 43.4% of revenue. Compared to the prior year pro forma results, the increase in current period operating expenses reflects an increase in the pace of our research and development activities to contribute to future product releases, higher sales commissions and other costs associated with our overall growth in revenue.

Operating income in the second quarter was $3.8 million. Reported operating income in the second quarter of the prior year was $6.3 million, including the net gain from litigation items. Excluding this gain, prior year pro forma second quarter operating income was $2.3 million. When compared to prior year pro forma results, current period operating income improved 64%, and current period operating margin increased from 5.1% to 7.2%.

Net income for the second quarter was $2.3 million, or $0.10 per diluted share, a 32% increase over pro forma net income of $1.7 million or $0.07 per diluted share last year, excluding the litigation-related items.

EBITDA was $5.2 million for the second quarter of 2008. Adjusted EBITDA, which excludes stock-based compensation expense and the net gain from litigation-related items, was $5.6 million, or 11% of revenue, compared to $4.9 million, or 11% of revenue, for the second quarter of 2007.

The Company generated $6.3 million in cash from operating activities during the quarter and had $27.7 million in cash and short-term investments as of June 30, 2008.

"Our strong second quarter revenue growth reflects the continued expansion of AED deployments globally and our ability to capture significant share in this growing market. Our international defibrillation performance was truly exceptional. We are also quite pleased to be experiencing the continued improvement in the service areas and to be shipping the hospital defibrillator product again," said John Hinson, president and chief executive officer.

Outlook

The Company updated its full-year guidance for 2008 and now expects revenue for 2008 to be in a range between $205 and $210 million, representing growth of 13% to 15% over 2007 and up from the 10% growth rate the Company had previously expected. The increase in the Company's expectations is driven by higher growth in international AED revenues, meaningful revenue from the hospital defibrillator product and continued strength in the Company's service offerings.

Net income, inclusive of an estimated income tax rate of 37%, was previously expected to be in a range between $8 and $9 million, or between $0.34 and $0.39 per share. In light of the increase in expected revenue, as well as the Company's intention to continue to increase its spending on R&D, the Company now expects net income to be in a range between $8.75 and $9.5 million, or between $0.38 and $0.41 per share. Adjusted EBITDA is expected to be in a range between 11.0% and 11.5% of revenue.

Non-GAAP and Pro Forma Financial Information

This news release contains a discussion of EBITDA, Adjusted EBITDA, Pro Forma Operating Income, and Pro Forma Net Income, which are non-GAAP financial measures provided as a complement to results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The term "EBITDA" refers to a financial measure defined as earnings before net interest, income taxes, depreciation, and amortization. "Adjusted EBITDA" refers to EBITDA before stock-based compensation and litigation expense. Pro Forma Operating Income refers to Operating Income before litigation expenses. Pro Forma Net Income refers to Net Income before litigation expenses and the related tax effect of these expenses. None of these measures are a substitute for measures determined in accordance with GAAP, and may not be comparable to the same measures as reported by other companies. EBITDA, Adjusted EBITDA, Pro Forma Operating Income, and Pro Forma Net Income are an integral part of the internal management reporting and planning process and are the primary measures used by management to evaluate the operating performance of the Company. The components of these measures include the key revenue and expense items for which operating managers are responsible and upon which their performance is evaluated. The Company also uses Adjusted EBITDA for planning purposes and in presentations to its board of directors. Reconciliations of net income, the most comparable GAAP measure, to EBITDA, Adjusted EBITDA, Pro Forma Operating Income, and Pro Forma Net Income are contained in this press release.

Conference Call Information

Cardiac Science will conduct a conference call at 4:30 p.m. Eastern Time today to discuss the Company's financial results for the second quarter. The call will be hosted by John Hinson, chief executive officer, and Mike Matysik, senior vice president and chief financial officer.

To access the conference call, please dial 800-257-3401. International participants can call 303-262-2125. The call will also be web cast live at www.cardiacscience.com. An audio replay of the call will be available for 7 days following the call at 800-405-2236 for U.S. callers or 303-590-3000 for those calling outside the U.S. The password required to access the replay is 11117631#. An audio archive will be available at www.cardiacscience.com for 90 days following the call.

About Cardiac Science

Cardiac Science, a wholly owned subsidiary of Opto Circuits (India) Ltd., develops, manufactures, and markets a family of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators (AED), electrocardiograph devices (ECG/EKG), cardiac stress treadmill and systems, PC-based diagnostic workstations, Holter monitoring systems, hospital defibrillators, vital signs monitors, cardiac rehabilitation telemetry systems, and cardiology data management systems (informatics) that connect with hospital information (HIS), electronic medical record (EMR), and other information systems. The company sells a variety of related products and consumables and provides a portfolio of training, maintenance, and support services. Cardiac Science, the successor to the cardiac businesses that established the trusted Burdick^®, HeartCentrix^®, Powerheart^®, and Quinton^® brands, is headquartered in Bothell, Washington. With customers in almost 100 countries worldwide, the company has operations in North America, Europe, and Asia. For information, call 425.402.2000 or visit http://www.cardiacscience.com.

Forward-Looking Statements

This press release contains forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, those relating to Cardiac Science Corporation's future AED sales in Japan, expected shipments of backordered products in the fourth quarter of 2010, and expectations regarding the closing of the transaction with Opto Circuits. These are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results and performance may vary significantly from those expressed or implied in such statements. Factors that could cause or contribute to such varying results and other risks include those more fully described in the Annual Report on Form 10-K filed by Cardiac Science Corporation for the year ended December 31, 2009, as updated by subsequent quarterly reports on Form 10-Q. Cardiac Science Corporation undertakes no duty or obligation to update the information provided herein.

For updates and information on worldwide defibrillation and cardiac monitoring, find us on Facebook at http://facebook.com/cardiacscience, the Cardiac Science blog at http://www.cardiacscience.com/blog, Twitter at http://twitter.com/cardiacscience, and YouTube at http://budurl.com/CSonYT

For information, contact (media) Anastasia Mironova amironova@cardiacscience.com+1.425.402.2092 | (investors) ir@optoindia.com | +91.80.2852.8088 LOGO: http://www.cardiacscience.com/images/main_logo.gif